Good job Mr. President, letting politics influence business decisions: With a $5 Billion Pipeline Project, Canada Looks to Bypass U.S. for Asia .
From The Wall Street Journal:
Kinder Morgan Energy Partners LP KMP +1.11%said Thursday it will begin a $5 billion expansion of its Trans Mountain pipeline, nearly tripling the capacity of crude oil it can ship to Canada's west coast—the latest project aimed at moving the country's rising oil production to markets outside the U.S.
Currently, almost all Canadian crude exports travel to the U.S. While Canadian oil output has been climbing fast, pipeline capacity to move it from the country's biggest oil patch in landlocked Alberta to U.S. refining markets is stretched.
The resulting glut, and rising oil production in the U.S. itself, has depressed prices for Canadian crude. Canadian government officials, meanwhile, have boosted support for westward-flowing pipelines in order to diversify toward Asian markets. That effort accelerated after the White House earlier this year rejected a big pipeline-expansion project, TransCanada Corp.'s TRP +0.87%Keystone XL, which would have sent more Alberta crude south of the border.
Canadian oil executives have sought to open new markets for their crude, especially after the White House rejected the Keystone XL project. The pipeline became ensnared in a political battle in Washington, with environmental groups and many Democrats opposing the pipeline. Republicans embraced it as a way to bolster energy security and create jobs.
U.S. President Barack Obama has said he is open to reviewing Keystone XL again, if TransCanada reapplied for a permit. A decision wouldn't be made, though, before this year's presidential election. Late last month, the government of Canadian Prime Minister Stephen Harper said it would streamline regulatory reviews of big energy and mining projects meant to move resources to markets.Mr. Harper and other Canadian officials have said they want to open up new markets for Canada's resources in China and Asia, instead of relying on the U.S. as its biggest buyer.
Kinder Morgan Energy Partners LP KMP +1.11%said Thursday it will begin a $5 billion expansion of its Trans Mountain pipeline, nearly tripling the capacity of crude oil it can ship to Canada's west coast—the latest project aimed at moving the country's rising oil production to markets outside the U.S.
Currently, almost all Canadian crude exports travel to the U.S. While Canadian oil output has been climbing fast, pipeline capacity to move it from the country's biggest oil patch in landlocked Alberta to U.S. refining markets is stretched.
The resulting glut, and rising oil production in the U.S. itself, has depressed prices for Canadian crude. Canadian government officials, meanwhile, have boosted support for westward-flowing pipelines in order to diversify toward Asian markets. That effort accelerated after the White House earlier this year rejected a big pipeline-expansion project, TransCanada Corp.'s TRP +0.87%Keystone XL, which would have sent more Alberta crude south of the border.
Canadian oil executives have sought to open new markets for their crude, especially after the White House rejected the Keystone XL project. The pipeline became ensnared in a political battle in Washington, with environmental groups and many Democrats opposing the pipeline. Republicans embraced it as a way to bolster energy security and create jobs.
U.S. President Barack Obama has said he is open to reviewing Keystone XL again, if TransCanada reapplied for a permit. A decision wouldn't be made, though, before this year's presidential election. Late last month, the government of Canadian Prime Minister Stephen Harper said it would streamline regulatory reviews of big energy and mining projects meant to move resources to markets.Mr. Harper and other Canadian officials have said they want to open up new markets for Canada's resources in China and Asia, instead of relying on the U.S. as its biggest buyer.
posted by Sid Cottingham | 5:51 AM
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